Coinbase Wins as SEC Permanently Ends Civil Enforcement Case

The U.S. SEC announced that it has filed a joint stipulation with Coinbase to dismiss the civil enforcement action against the exchange. 

The agency stated that the decision aligns with its ongoing efforts to establish a clearer regulatory framework for digital assets. Paul Grewal, Coinbase’s Chief Legal Officer, reacted to the news with a brief but pointed remark, stating, “Goodbye. And good riddance.”

Crypto Task Force and SEC’s Regulatory Shift

On January 21, 2025, the SEC launched the Crypto Task Force to create a comprehensive and transparent regulatory structure for crypto assets. Given this initiative, the agency opted to drop the case against Coinbase, signaling a shift from enforcement actions to broader regulatory development.

Acting SEC Chairman Mark T. Uyeda emphasized that previous approaches primarily relied on enforcement without engaging the public. He stated that the agency now aims to develop policy in a more transparent manner. The SEC clarified that its decision does not reflect an assessment of the claims against Coinbase but rather a strategic regulatory shift.

SEC Dismissals Extend to Other Crypto Firms

Also, blockchain firm Consensys reached an agreement with the SEC to conclude an ongoing securities litigation case.

Specifically, Ethereum co-founder Joseph Lubin announced that the agency had consented to dropping its investigation into MetaMask. Lubin stated that the SEC would file a stipulation to finalize the case, which had been ongoing for eight months.

The dismissal also follows a pattern of recent SEC decisions to end enforcement actions involving major crypto entities. Within the past week, the agency dropped investigations into Robinhood, Uniswap, Gemini, and OpenSea.